Gresham House Ventures has made a follow-on investment of £4mn into Patchworks, a software company helping ecommerce businesses automate and manage data flows across backend systems.
We initially invested £3.3mn in Patchworks in 2021, which supported the business in expanding its client base and widening its suite of products, contributing to a substantial increase in recurring revenues.
Founded in 2014, Patchworks now serves over 200 dynamic ecommerce customers, including Huel, Gymshark and Lounge Underwear.
The business also saw a 31% increase in orders processed during Black Friday and Cyber Monday in 2022 compared with 2021.
The additional investment will be used to further enhance Patchworks’ low code/no code self-serve integration platform, complete its microservice, API-first, cloud native roadmap and bolster its professional services and support teams, positioning the business as the leading choice for integrating ecommerce platforms such as Adobe Commerce, BigCommerce or Shopify with platforms like Oracle NetSuite, Linnworks and Microsoft Dynamics 365.
The investment continues an active period of deal-making and growth, recently leading a £7mn investment round in transport tech scaleup Vivacity and carrying out a successful exit from outdoor apparel manufacturer Equip Outdoor Technologies for a 6.9x money multiple.
Grant Paul-Florence, Director of Investment said:
“Gresham House Ventures’ previous investment in Patchworks has played a significant role in supporting its recent growth. We are confident that the business can continue to go from strength to strength over the coming years as it increases its market share. This latest investment will enable Patchworks to strengthen its product offering further and cement its position as a go-to provider for ecommerce businesses looking to achieve scale and seamlessly integrate their backend systems.”
Simon Drane, Chairman of Patchworks said:
“Patchworks has had an amazing journey over the past two years. The investment from Gresham House Ventures has enabled the business to more than double recurring revenues, launch new products and win some amazing new clients. We now have a clear vision as a board on areas that we need to focus on, and this new round of funding will enable us to deliver on those areas under the leadership of our excellent new CEO Jim Herbert.”
